Performance Management 101 and its Common Challenges

HR has evolved to become a vital component of any organization’s success. A big part of that success comes from an effective performance management process.

What is performance management?

Performance management is the process of using various aspects of individual performance to identify competencies that can be reinforced or coached to enhance the development of an organization. Goals/objectives are used to improve your team’s performance. It includes everything from a worker’s interactions with peers to their view about the success of the company they work with or for.

Common challenges of performance management

Here are a few roadblocks organizations often encounter when implementing a performance management process:

No strong support system

Performance reviews shouldn’t only be for contributing employees but for everyone who works in the organization. Every member of the team should be ready to commit to supporting a system that drives performance. Leaders need to show that they are also part of the system and openly support it.

Designing a performance management system for the new generations of workers

As people between the ages of 18 to mid-30’s become the majority in the workforce, changes are shaking up the work environment. Your process can be flexible and doesn’t need to follow the traditional rules where performance reviews are driven by situation.

Late feedback by the organization

When performance management reviews are handed out, they are often not submitted at the same time nor are the results collated at once. Employees want swift feedback from management so they know what changes to make to boost their performance. Late feedback makes employees lose sight of the significance of the process, leading to a lack of trust of the supervising body and great disappointment.

Lack of communication and credibility

For any organization to stay ahead of the performance trend, there needs to be an open-communication system between all employees. This bridges any gap of mistrust and lack of credibility that employees might feel toward their superiors.

Poor performance management is very expensive and delivers little or no value, impacting an employee’s drive, performance, and attitude. But if all employees can be recognized through a simple and effective system, you will notice individual growth, an increase in revenue, and your top players staying put to pursue even more success.